AM Best raises AXA’s credit ratings on steady profitability & diversified business

AM Best, the credit rating agency, has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) of AXA S.A. (AXA) and its rated subsidiaries to “aa” (Superior) from “aa-” (Superior).

The agency also reaffirmed the Financial Strength Rating (FSR) of A+ (Superior). AXA, headquartered in France, serves as the primary operating holding company of the AXA Group and functions as its internal reinsurer. The outlook for all ratings remains stable. (A detailed list of the companies is provided below.)

According to AM Best, the ratings are based on AXA’s strong balance sheet, steady profitability, diversified business mix, and sound risk management framework.

The upgrade of the Long-Term ICRs reflects ongoing improvements in AXA’s balance sheet, supported by careful capital management and increased risk diversification in recent years.

AXA’s financial position is assessed as very strong, backed by consolidated risk-adjusted capitalisation at the highest level under Best’s Capital Adequacy Ratio (BCAR).

The group’s earnings and capital management practices support its overall financial position. AM Best also views AXA’s financial flexibility as strong, reflecting its consistent access to global capital markets. However, the agency pointed out that a portion of AXA’s capital base is supported by softer components, including hybrid debt and the contractual service margin related to its life insurance business.

The group reported stable operating performance, supported by a broad mix of earnings across its main business areas. In 2024, AXA recorded net income (including minority interests) of EUR 8.1 billion, compared with EUR 7.4 billion in 2023, reflecting improved technical results in key segments and steady investment returns.

AXA remains one of the world’s largest insurance groups, with operations spread across multiple regions and business lines. The company holds established positions in both developed and emerging markets and provides a wide range of life, health, and property-casualty insurance products. Its size and brand presence continue to support its market position.

The Long-Term ICR upgrades to “aa” (Superior) from “aa-” (Superior) and the affirmation of the A+ (Superior) FSR, both with stable outlooks, apply to AXA S.A. and the following subsidiaries:

• AXA XL Reinsurance Ltd
• AXA XL Insurance Company UK Limited
• AXA XL Insurance Company Americas
• Catlin Re Switzerland Ltd
• Greenwich Insurance Company
• Indian Harbor Insurance Company
• T.H.E. Insurance Company
• XL Bermuda Ltd
• XL Insurance America, Inc.
• XL Insurance Company SE
• XL Insurance Company of New York, Inc.
• XL Insurance Switzerland Ltd
• XL Specialty Insurance Company
• XL Re Europe SE
• XL Reinsurance America Inc.